Custodial fees

Custodial fees

Fees charged by an institution that holds securities in safekeeping for an investor.

Custodial Fee

A fee a brokerage or other financial institution charges for safekeeping services. Safekeeping or custody is a service in which the brokerage or financial institution holds securities on behalf of the client, which reduces the risk of the client losing his/her assets or having them stolen. They are also available to the brokerage to sell at the client's demand. Like a bank, custody provides an investor a place to store assets with little risk. Unlike a bank, custodians are not allowed to use the items in safekeeping for their own ends. Assets in custody are not fungible for the brokerage because they remain in the client's name.
Mentioned in ?
References in periodicals archive ?
In addition, sales-related compensation such as commissions, 12(b-1) fees and revenue sharing must be disclosed, but reasonable and customary custodial fees not tied to the value of a client's transactions and fees for professional services under a Turnkey Asset Management Platform do not need to be released.
On top of the management fees there are custodial fees which are quite high; storage, maintenance, insurance etc.
dividends, interest, capital gains); therefore, these fees for services of investment counsel, as well as custodial fees, represent deductions from adjusted gross income (AGI).
5% of the assets under management for management and custodial fees, respectively, and (2) establishes minimum and maximum limits of investments depending on assets' characteristics.
If you take five per cent of market cap and custodial fees thereon of 10-12 basis points, that's a lot at stake," said the source.
This means no shipping, insurance, holding or custodial fees, making it incredibly cost effective.
They will use it only for football and occasional district events, and pay maintenance and custodial fees on those occasions.
The $8,000 in her IRA is invested in a blue-chip fund; she should roll over that money into a Fidelity IRA account to eliminate paying custodial fees.
For actively managed international funds commissions, custodial fees and operating and trading cost differences are even greater than for domestic funds.
Higher transaction fees are likely for such services as brokerage transactions, mutual fund custodial fees and insurance policies, she predicted.
The custodians are more advanced in some countries than others, so their comfort levels on cash management, accounting reliability, recoupment of withholding taxes and custodial fees vary.
When the small print was released a few months later, the custodial fees from 3 to 6 hadn't been eliminated; they had been waived for a $5,650 raise, plus pension costs, for each of the custodians, for a total cost of $6 million, whether there were after-school programs in the particular school or not.